Brokers can now be permanently disbarred in cases of ‘aggravated’ circumstances

Wall Street’s self-regulator has stiffened some of its penalties and issued more aggressive guidelines for dealing with brokers and firms that violate securities rules or commit fraud.

The Financial Industry Regulatory Authority said Tuesday its National Adjudicatory Council increased to two years from one the maximum suspension for brokers who are found to have recommended an unsuitable investment to customers. In cases of aggravated circumstance, Finra judges are now advised to “strongly consider” permanently barring a...